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HomeMy WebLinkAbout1526 WhiteIn Re: Duane White, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Nicholas A. Colafella Mark Volk 08 -027 Order No. 1526 7/22/09 8/4/09 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. White, 08 -027 Page 2 I. ALLEGATIONS: That Duane White, a public official /public employee in his capacity as a Supervisor for Nicholson Township, Wyoming County, violated Sections 1103(a), 1103(f), 1104(a), and 1105(b) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a), 1103(f), 1104(a), and 1105(b), when he participated in board decisions to authorize the hiring of his son to perform services for the township and when contracts were entered into with his son in excess of $500.00 without an open and public process; when he failed to file Statements of Financial Interests for the 2004, 2005, and 2007 calendar years; and when he failed to disclose on Statements of Financial Interests filed for the 2003 and 2006 calendar years all sources of income in excess of $1,300. II. FINDINGS: 1. Duane White has served as a Supervisor of Nicholson Township, Wyoming County, for approximately 20 years. 2. Nicholson Township is a Second Class Township governed by a three member Board of Supervisors. 3. Voting at Nicholson Township meetings occurs by motions being made and then properly seconded. If a Supervisor is not in favor of a motion a roll call vote is then taken. a. Any abstentions or objections made to a motion are noted in the minutes. 4. Motions are made at regular monthly meetings to pay bills for invoices received. a. Bill lists are provided at each meeting. 1. Each bill is available for review by Supervisors prior to approval. b. Invoices are initialed for approval at times. 1. Invoices are not required to be initialed and not all invoices are initialed if approved. 2. Final approval of payment issued for invoices is done through motion at monthly meetings. 5. Signature authority over township accounts is held by all three Supervisors and the Secretary /Treasurer. a. Checks require the signatures of all three Supervisors and the Secretary /Treasurer. 6. Payroll is generated based upon time sheets submitted by employees. a. Paychecks are then signed by all three Supervisors. b. The signing of the paychecks constitutes approval of payroll. c. Time sheets are at times initialed by Supervisors to indicate that they were reviewed and approved. 7 Frost Valley Farms is located in Nicholson, Pennsylvania. White, 08 -027 Page 3 a. Frost Valley Farms is owned and operated by Duane White. 8. Jamie White is the son of Respondent Duane White. a. Jamie White began working as a part -time road crew worker for Nicholson Township in or about November 2007. 1. White began working for the Township following the resignation of road worker Tom Voda and the resignation of Matthew Damiano as Township Supervisor and Roadmaster. b. White plowed snow and performed laborer duties as an employee. c. White was compensated at a rate of $15.00 per hour due to his possession of a CDL license and the ability to operate Township equipment. 9. There is no record in Nicholson Township meeting minutes of a formal vote to hire Jamie White as an employee. a. A formal hiring process was not followed to hire Jamie White as a township employee. b. The part -time employee position was not formally advertised. c. The Township has, in the past, advertised for positions, but received no applications from individuals who were licensed to operate equipment. 1. The Township advertised for an equipment operator /laborer in 2007, but received no responses. 10. Jamie White owned and operated White's Trucking from approximately 2005 until sometime in 2008. a. White's Trucking's normal operation consisted of hauling bulk material. b. White's Trucking owned a truck and a trailer. c. White's Trucking's only employee was Jamie White. d. White's Trucking dissolved in or around April 2008. 11. Time sheets confirm that Jamie White worked in a part -time employee capacity as a road crew worker for Nicholson Township between November 2007 and November 2008. 12. From November 18, 2007, through December 31, 2008, Jamie White worked a total of 79.583 hours as a part -time road worker for Nicholson Township and was compensated at a rate of $15.00 per hour. a. Duane White initialed 6 of the 8 time sheets for approve [sic] submitted by Jamie White. b. Nicholson Township records confirm that Jamie White was paid $481.25 in 2007 and $1,014.50 in 2008 for a total amount of $1,495.75 as a part -time road crew employee. c. Duane White signed eight (8) of the ten (10) checks issued to Jamie White White, 08 -027 Page 4 for work completed as a part -time employee. d. Duane White voted to approve nine (9) of the ten (10) payments issued to Jamie White for work done as a part -time employee. 13. Jamie White cashed or deposited to his personal account all payroll checks issued to him by Nicholson Township. THE FOLLOWING FINDINGS RELATE TO SERVICES PERFORMED FOR NICHOLSON TOWNSHIP BY JAMIE WHITE D /B /A WHITE'S TRUCKING. 14. Floods occurred in Nicholson Township in or around June 2007 causing damage to several roads in the Township. a. Two of the roads damaged were Jones Road and Marshall Squire Road. 15. At the June 2007 Nicholson Township Supervisor Meeting discussion included the running of an advertisement for bids for an excavator for flood work. Meeting minutes contain the following: "Bill (Smith) said that for a few of the FEMA projects, he would like to run an ad and rent an excavator for those sites." 16. An ad was placed at the direction of the Board of Supervisors in the New Age Examiner on June 20, 2007, June 27, 2007, and July 4, 2007, for sealed bids for an excavator. The ad read as follows: "Nicholson Twp will be opening sealed bids on July 11 at 7 PM. The Twp is seeking to rent an excavator, by the hour, with an operator. The excavator must be a minimum of 12 ton with a 20 ft. extension and a thumb /grabber. Approx. 40 hours worth of work. For Details, call 570 - 942 -4325. Bid forms will be provided by Twp. Bid Bond is a must. Work set to start approx. July 16, 2007." a. The bid specifications were written by Supervisor William Smith due to his background as an employee of PennDOT. 17. No bids were received by the Township in response to the ad for an excavator. 18. Duane White approached Supervisor William Smith after the July 11, 2007, meeting and offered that his son, Jamie White, could obtain an excavator and complete the work on Jones Road and Marshall Squire Road for the township. a. Duane White told Smith that Jamie White could rent an excavator from Nicholson Township resident Bob Damiano and indicated that Jamie had previously used Damiano's excavator for other projects. b. Smith and Duane White agreed for Jamie White to complete the work on Jones Road and Marshall Squire Road utilizing the excavator owned by Damiano. c. There was no formal motion made at a public meeting approving Jamie White to complete the work. d. The decision was made after no quotes were received following the public advertisement of June 20, 2007. 19. At the time the work on Jones Road and Marshall Squire Road was approved there were only two members on the Board of Supervisors in Nicholson Township due to White, 08 -027 Page 5 the resignation of former Supervisor Matt Damiano. a. JoAnn Ritter was appointed as a Supervisor at the July 11, 2007, meeting after Damiano's resignation was formally accepted. 1. Ritter was unaware of Duane White's and William Smith's agreement to utilize Jamie White to repair the Township roads. 20. In or around July and August 2007 Jamie White d /b /a White's Trucking began the repairs on Jones Road. a. Jamie White used a 312 CAT excavator for approximately 28 hours to clean out the creek adjacent to the road and to place rip rap rock in the creek to prevent flooding and erosion. b. Jamie White also utilized a mini skid steer to clean out under a bridge built across the creek on the road. 1. The work with the mini skid steer was completed by Jamie White on or around July 27, 2007. 21. The 312 CAT excavator utilized by Jamie White to perform the work on Jones Road is owned by Duane White. 22. Jamie White was charged a $90.00 per hour rental fee for use of the excavator by his father Duane White. a. Duane White did not invoice Jamie White for use of the excavator. b. Supervisors Smith and Ritter were unaware that the 312 CAT Excavator was owned by Duane White. 23. The mini skid steer utilized by Jamie White was rented from Powell's Rental, Inc. located in Clarks Summit, Pennsylvania. 24. Jamie White d /b /a White's Trucking submitted an invoice to Nicholson Township for work performed on Jones Road which included the use by Jamie White of his father's excavator and the rented mini skid steer. 25. Jamie White d /b /a White's Trucking [submitted an] invoice to the Township on or about August 27, 2007, for the Jones Road project, [which] included the following: Date Description Amount 8/27/07 28 hrs 312 CAT Excavator, clean up creek and place rip rap @$115.00 per hour $3,220.00 11 hrs with mini skid steer cleaning under bridge $65.00 /hr @11 hours Total $ 715.00 $3,935.00 26. Supervisors Duane White and William Smith reviewed and approved the White's Trucking invoice of August 28, 2007 *. *[sic]. [Cf., Fact Finding 25 as to the date of the invoice.] a. The initials D.W. and W.D.S. appear on the invoice indicating both supervisors' approval. Check Date Check No. Amount Meeting Date Action by Duane White Recorded Vote 9/5/2007 1308 $3,935.00 9/5/2007 Second, Vote 3 to 0 Check Date Check No. Amount Signed 9/5/2007 1308 $3,935.00 White, Smith, Ritter Check Date Check No. Amount Signed 9/26/2007 1342 $3,910.00 White, Smith, Ritter White, 08 -027 Page 6 27. Nicholson Township records confirm a payment made to White's Trucking by the Township for the above outlined invoice as follows: a. The check was signed by all three Supervisors, including Duane White. 28. White participated in the approval of payment of Township bills which included the payment to White's Trucking for the invoiced work on Jones Road as shown below: 29. In September 2007, Jamie White d /b /a White's Trucking began repairs for Nicholson Township on Marshall Squire Road. a. Marshall Squire Road was also damaged in June 2007 due to the flooding. b. Jamie White used a 312 CAT excavator to replace pipe, to clean out the creek by the road, and to place rip rap rock in the creek to prevent flooding and erosion. 30. The 312 CAT excavator utilized by Jamie White to perform the work on Marshall Squire Road is owned by Duane White. 31. A White's Trucking invoice dated September 25, 2007, directed to the Township, included the following: Date Description Amount 9/25/07 34 hrs with 312 CAT Excavator replacing pipe and cleaning creek and placing rip rap @$115.00/hr $3,910.00 32. The invoice submitted by White's Trucking for work on Marshall Squire Road was not initialed by any of the three Supervisors indicating review and approval prior to payment being issued. 33. Nicholson Township records confirm payment made to White's Trucking for the September 25, 2007, invoice for work on Marshall Squire Road as indicated below: a. The check was signed by all three Supervisors, including Duane White. 34. Duane White participated in the approval of all bills for the month of September which included the payment to White's Trucking for the invoiced work on Marshall Squire Road as shown below: Check Date Check No. Amount Meeting Date Action Recorded Vote 9/26/2007 1342 $3,910.00 9/5/2007 Second, Vote 3 to 0 White, 08 -027 Page 7 35. Jamie White issued payments to Duane White and /or Frost Valley Farms for rental of the 312 CAT Excavator used on Jones Road and Marshall Squire Road in Nicholson Township. a. The checks were drawn on White's Trucking account at Peoples National Bank. b. Payments were made to Duane White /Frost Valley Farms following receipt by Jamie White of Township payments made to White's Trucking. 36. Payments made by Jamie White /White's Trucking to Duane White /Frost Valley Farms for excavator rental in 2007 included the following: a. Check Date Check No. Payee Amount 09/11/07 395 Frost Valley Farms $2,520.00 10/01/07 416 Frost Valley Farms $3,060.00 Total $5,580.00 b. Based on amounts paid by Jamie White to Frost Valley Farms and the number of hours Jamie White invoiced the Township, the rate charged by Frost Valley Farms to White's Trucking was $90.00 per hour. 37. On or around March 9, 2008, flash floods occurred in Nicholson Township causing damage to Spencer Hill Road. 38. Township officials were contacted regarding the damage to Spencer Hill Road and sent road worker David Edwards to check the damage of the road. a. Edwards reported that the road was severely damaged and recommended that other road workers be contacted to try to save the road. b. Nicholson Township road workers David Edwards and Robert Smith and part -time road worker Jamie White worked on Spencer Hill Road as Township employees on March 9, 2008. c. Supervisor William Smith assisted Edwards, Smith, and White with the work. d. Supervisor Smith ran the Township grader on one end of the road while Edwards, Smith, and White utilized other Township equipment on the other end of the road. 39. On March 9, 2008, Supervisor Joann Ritter met with Supervisor Smith on Spencer Hill Road and discussed Jamie White obtaining an excavator to assist with the repairs on Spencer Hill Road. a. Ritter and Smith discussed having White place draining pipes in the road. 1. The Township did not have equipment capable of making the necessary repairs. b. Ritter and Smith agreed to have White complete the work. Date Hours Hourly Rate Services Total 03/10/08 3 $75.00 Pick up delivering pipe Delivery of Excavator $225.00 03/10/08 6 $115.00 Pipe replacement 312 Excavator $690.00 03/11/08 8 $115.00 Digging out, replacement of Pipe and backfilling with 312 Excavator $920.00 03/13/08 10 $115.00 Replacement of pipe and Backfilling with 312 Excavator $1,150.00 03/14/08 10 $115.00 Building of head walls, replacement of pipe, backfilling with 312 Excavator $1,150.00 03/17/08 10 $115.00 Replacement of pipe and backfill with 312 Excavator $1,150.00 03/18/08 5 $115.00 Digging and backfill of pipe with 312 Excavator $575.00 03/20/08 6 $115.00 Cleaning and preparing ditches, building of head mills $690.00 White, 08 -027 Page 8 c. Duane White was not present during the discussion. 40. At the time Jamie White was approved to place the drainage pipes Supervisors Smith and Ritter were unaware that the excavator that was to be utilized for the work was owned by Duane White. a. Smith believed that the excavator was to be obtained from Township resident Bob Damiano. b. Ritter believed the excavator was to be obtained from Powell Equipment located in Clarks Summit, Pennsylvania. c. Smith and Ritter would not have [given approval] for Jamie White to complete the work on Spencer Hill Road if they had known that Duane White owned the excavator utilized to complete the work. 41. Jamie White d /b /a White's Trucking invoiced Nicholson Township by the day as opposed to one invoice for the entire project. a. White was instructed to do so by Supervisor /Secretary /Treasurer Joann Ritter so it would be easier for her to keep track of work completed and the amount of pipe utilized to complete the road project. 42. On March 10, 2008, work began on Spencer Hill with the pickup and delivery of pipes and the excavator by Jamie White and concluded on or about March 26, 2008. a. The truck and trailer used to haul the excavator and pipes to Spencer Hill Road was owned by Jamie White. 43. Jamie White d /b /a White's Trucking performed services as follows for the repairs to Spencer Hill Road: Check Date Check No. Amount Meeting Date Action Recorded Vote 3/07/2008 237* $984.00 3/5/2008 Vote 3 to 0 3/21/2008 253 $915.00 3/5/2008 Vote 3 to 0 3/21/2008 254 $3,220.00 3/5/2008 Vote 3 to 0 3/27/2008 279 $2,415.00 3/5/2008 Vote 3 to 0 4/12/2008 296 $1,380.00 4/12/2008 Seconded, Vote 3 to 0 Check Date Check No. Amount Signed Invoice No.'s 3/21/2008 253 $915.00 White, Smith, Ritter 1,2 3/21/2008 254 $3,220.00 White, Smith, Ritter 3,4,5 3/27/2008 279 $2,415.00 White, Smith, Ritter 6,7,8 4/2/2008 296 $1,380.00 White, Smith, Ritter 9 03/26/08 12 $115.00 Installation and backfilling of two pipes $1,380.00 Total $7,930.00 White, 08 -027 Page 9 44. Jamie White was assisted by Township road workers Robert Smith and David Edwards throughout the entirety of the work on Spencer Hill Road. a. Smith and Edwards utilized the Township backhoe and dump trucks to assist Jamie White with the work. 45. The 312 CAT excavator utilized by Jamie White for the work on Spencer Hill Road is owned by Respondent Duane White. a. Jamie White had an unwritten agreement with Duane White to pay a rental fee of approximately $90.00 per hour for use of the excavator for the Spencer Hill Road project. b. Duane White was present on the worksite on more than one occasion including when delivering fuel and was aware of the work performed by Jamie White and the equipment being utilized. 46. White's Trucking submitted nine invoices to Nicholson Township for work performed on Spencer Hill Road. a. Only two of the invoices submitted by White's Trucking were initialed by any member of the Board of Supervisors. b. Supervisor Duane White initialed two of the invoices. 47. Nicholson Township records confirm payments made to White's Trucking for the above outlined invoices totaling $7,930.00. a. Duane White signed all four (4) of the checks. 48. White participated in the approval of all Township bills for the months of March 2008 and April 2008 which included the payments to White's Trucking for the invoiced work on Spencer Hill Road as shown below: Date Hours Total Twp. Charge Rental Fee J. White Financial Gain 8/27/2007 28 $3,220.00 $2,520.00 $700.00 9/25/2007 34 $3,910.00 $3,060.00 $850.00 3/10/2008 6 $690.00 $540.00 $150.00 3/11/2008 8 $920.00 $720.00 $200.00 3/13/2008 10 $1,150.00 $900.00 $250.00 3/14/2008 10 $1,150.00 $900.00 $250.00 3/17/2008 10 $1,150.00 $900.00 $250.00 3/18/2008 5 $575.00 $450.00 $125.00 3/20/2008 6 $690.00 $540.00 $150.00 3/26/2008 12 $1,380.00 $1,080.00 $300.00 Total 129 $14,835.00 $11,610.00 $3,225.00 Date Hours Twp. Charged Hourly Total Twp. was Charged 8/27/2007 28 $115.00 $3,220.00 9/25/2007 34 $115.00 $3,910.00 3/10/2008 6 $115.00 $690.00 3/11/2008 8 $115.00 $920.00 3/13/2008 10 $115.00 $1,150.00 3/14/2008 10 $115.00 $1,150.00 3/17/2008 10 $115.00 $1,150.00 3/18/2008 5 $115.00 $575.00 3/20/2008 6 $115.00 $690.00 3/26/2008 12 $115.00 $1,380.00 Total 129 $14,835.00 Date Check No. Payee Amount 03/19/08 627 Frost Valley Farms $3,582.00 04/04/08 645 Frost Valley Farms $3,094.00 ** White, 08 -027 Page 10 *[Check number 237 was for other work. See, Fact Findings 47, 62.] 49. Jamie White /White's Trucking made payments to Duane White /Frost Valley Farms for the rental of a 312 Excavator in relation to work performed on Spencer Hill Road. * *This payment included payments of $326.00 for the purchase of stone from Frost Valley Farms. 50. Nicholson Township was charged $115.00 an hour for work done by Jamie White with the excavator in 2007 and 2008. a. The following chart outlines the hours and amounts that Nicholson Township was invoiced by Jamie White for work done with the excavator owned by his father: 51. The following chart outlines the total financial gain realized by Jamie White for work done for Nicholson Township with the excavator: a. Jamie White received $3,225.00 for work done for Nicholson Township with the excavator. Date Township Payment to J. White Amount Date J. White Made Payment to D. White /Frost Valley Farms Amount 09/05/07 $3,935.00 09/11/07 $2,520.00 09/26/07 $3,910.00 10/01/07 $3,060.00 03/21/08 $915.00 03/21/08 $3,220.00 03/19/08 $3,582.00 03/27/08 $2,415.00 04/02/08 $1,380.00 04/04/08 $3,094.00 Township to White's Trucking for Excavator Payments White's Trucking Payments to Frost Valley Difference $14,835.00 $11,930.00 $2,855. White, 08 -027 Page 11 52. Duane White informed the members of the Board of Supervisors that his son had access to an excavator needed to repair Township roads and recommended that Jamie White could do the work. a. At the time of his recommendation, Duane White knew that Jamie White would be using an excavator owned by him or his company, Frost Valley Farms. 1. Duane White never disclosed to the Township Board of Supervisors that he owned the excavator to be used on Township jobs. b. Duane White participated in actions of the Board of Supervisors to approve payments and issue checks to White's Trucking. c. Within days of payments being issued to White's Trucking, Jamie White would make a payment to Frost Valley Farms for rental of the excavator. 53. Payments made to Duane White /Frost Valley Farms by Jamie White /White's Trucking occurred in conjunction with payments Jamie White received from Nicholson Township as follows: 54. The bulk of the payments Jamie White received from the Township for the excavator rental were used by Jamie White to pay Duane White. 55. Duane White received the following amounts as a result of the use of [his excavator]. 2007: $ 5,580.00 2008: $ 6,350.00 $11,930.00 a. Based on tax returns of Frost Valley Farms, Duane White's net profit on his business is 10 %. b. Total profit was $1,193.00 based on 10% of $11,930.00. 56. Nicholson Township also utilized the services of White's Trucking to haul cinders in February and March 2008. 57. Brown's Farm was awarded the bid to provide cinders to Nicholson Township for winter road maintenance at the July 11, 2007, Nicholson Township Supervisor Check Date Check No. Amount Meeting Date Action Recorded Vote 3/5/2008 237 $984.00 3/5/2008 Vote 3 to 0 Check Date Check No. Amount Signed 3/5/2008 237 $984.00 White, Smith, Ritter Date Invoice No. Amount Initials 2/29/2008 33963 $984.00 White, Smith White, 08 -027 Page 12 Meeting. a. In late February 2008, Nicholson Township ran out of cinders used for winter road maintenance. Brown's Farm was contacted by Supervisor Joann Ritter to obtain additional cinders. 1. Brown's Farm indicated to Ritter that they were busy and cinders could not be delivered for approximately 1 -2 weeks. 58. Jamie White informed Nicholson Township officials that he could haul the cinders for the Township. a. After discussion between Supervisors William Smith and Joan Ritter, Jamie White was approved to haul the cinders for the Township. b. Duane White did not participate in the discussion. 59. Jamie White delivered loads of cinders to Nicholson Township on the following dates: Dates Quantity Price 2/25/08 32 yards 12.00/yd 2/27/08 25 yards $12.00 /yd 2/28/08 25 yards $12.00 /yd 60. Jamie White d /b /a White's Trucking submitted an invoice to Nicholson Township for the delivery of the red cinders on February 25, 2008, February 27, 2008, and February 28, 2008. a. Board Members White and Smith reviewed and initialed the invoice prior to payment being made. b. The invoice submitted for the delivery of the red cinders to the Township was initialed by Supervisor Duane White and William Smith as outlined below: 61. Nicholson Township records confirm payment was made to White's Trucking for the above outlined invoice for the delivery of the red cinders. Payment to White's Trucking was made with the following check: a. The check was signed by Duane White. 62. Duane White participated in the approval of all bills for the month of March which included the payment to White's Trucking for the invoiced hauling of cinders as shown below: White, 08 -027 Page 13 THE FOLLOWING FINDINGS RELATE TO THE ALLEGATIONS THAT DUANE WHITE FAILED TO FILE STATEMENTS OF FINANCIAL INTERESTS FOR THE 2004, 2005, AND 2007 CALENDAR YEARS; AND [THAT] HE FAILED TO DISCLOSE ON STATEMENTS OF FINANCIAL INTERESTS FILED FOR THE 2003 AND 2006 CALENDAR YEARS ALL SOURCES OF INCOME IN EXCESS OF $1,300.00. 63. As a Supervisor for Nicholson Township, Duane White was annually required to file a Statement of Financial Interests form by the yearly May 1, deadline, containing information for the prior calendar year. 64. A Statement of Financial Interests compliance review conducted by the Investigative Division of the State Ethics Commission confirmed the following forms on file with Nicholson Township for Duane White: a. Calendar Year: 2003 Filed: 01/15/04 on SEC form 01/04 Position: Supervisor Creditors: None Direct /indirect sources of income: Nicholson Township Office, Directorship or Employment in any Business: Frost Valley Farms Financial Interest in any Business: Frost Valley Farms, Owner All other financial interests: None b. Calendar Year: 2006 Filed: 02/07/07 on SEC form 01/06 Position: Supervisor Creditors: None Direct /indirect income: Frost Valley Farms Office, Directorship or Employment in any Business: Frost Valley Farms Financial Interest in any Business: Frost Valley Farms, Owner All other financial interests: None 65. W -2 Wage and Tax Statements on file with Nicholson Township confirm the following annual compensation paid to Duane White. a. 2004: Unavailable b. 2005: $300.00 c. 2006: $ 50.00 d. 2007: $ 50.00 66. Duane White did not disclose Nicholson Township as a source of income on the Statement of Financial Interests form he filed on February 7, 2007, for the 2006 calendar year. a. White's income from the Township in 2006 was $50.00 and not reportable. 67. No record exists in Nicholson Township of Duane White filing Statements of Financial Interests for the following years: a. 2004 calendar year by May 1, 2005. b. 2005 calendar year by May 1, 2006. White, 08 -027 Page 14 c. 2007 calendar year by May 1, 2008. III. DISCUSSION: As a Supervisor of Nicholson Township ( "Township ") located in Wyoming County, Pennsylvania, Respondent Duane White (hereinafter also referred to as "Respondent," "Respondent White," and "White ") is a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Respondent White violated Sections 1103(a), 1103(f), 1104(a), and 1105(b) of the Ethics Act when he participated in decisions of the Township Board of Supervisors to authorize the hiring of his son to perform services for the Township and when contracts were entered into with his son in excess of $500.00 without an open and public process; when he failed to file Statements of Financial Interests for the 2004, 2005, and 2007 calendar years; and when he failed to disclose on Statements of Financial Interests filed for the 2003 and 2006 calendar years all sources of income in excess of $1,300. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting: White, 08 -027 Page 15 § 1103. Restricted activities (f) Contract. —No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 Pa. C. S. § 1103(f). Section 1103(f) of the Ethics Act provides in part that no public official /public employee or his spouse or child or business with which the public official /public employee or his spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more, or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated, unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. Section 1104(a) of the Ethics Act provides that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the Statement of Financial Interests form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the Statement of Financial Interests the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent White has served as a Township Supervisor for approximately 20 years. The Township Board of Supervisors ( "Board ") consists of three Members. All three Supervisors and the Secretary /Treasurer have signature authority over Township accounts. Township bills are available for review by the Supervisors prior to approval. At times, Supervisors initial invoices to indicate their approval. Final approval occurs at the Board's regular monthly meetings through a motion and vote to pay the bills. Payroll is generated based upon time sheets submitted by Township employees. At White, 08 -027 Page 16 times, time sheets are initialed by Supervisors to indicate review and approval. Paychecks are signed by all three Supervisors. The signing of the paychecks constitutes approval of payroll. In or about November 2007 Respondent's son, Jamie White, began working as a part -time road crew worker for the Township. A formal hiring process was not followed for the hiring. The part -time employee position was not formally advertised. There is no record in Township meeting minutes of a formal vote to hire Jamie White as an employee. From November 18, 2007, through December 31, 2008, Jamie White worked a total of 79.583 hours as a part -time road worker for the Township. He was compensated at the rate of $15.00 per hour due to his possession of a CDL license and ability to operate Township equipment. As a part -time Township employee, Jamie White was paid $481.25 in 2007 and $1,014.50 in 2008 for a total of $1,495.75. Respondent initialed six of the eight time sheets submitted by Jamie White. Respondent signed eight of the ten checks issued to Jamie White for work as a part -time Township employee. Respondent voted to approve nine of the ten payments issued to Jamie White for work as a part -time Township employee. In or around June 2007 floods caused damage to several roads in the Township including Jones Road and Marshall Squire Road. As a result of the flood damage, the Township placed an advertisement seeking sealed bids for excavation work. Bids were to be opened at the Board's July 11, 2007, meeting. No bids were received. Respondent owns and operates a business named "Frost Valley Farms." In 2007 and part of 2008, Jamie White owned and operated a business named "White's Trucking." After the July 11, 2007, Board meeting, Respondent approached Supervisor William Smith ( "Smith ") and offered that his son, Jamie White, could obtain an excavator and complete the work on Jones Road and Marshall Squire Road for the Township. Respondent told Smith that Jamie White could rent an excavator from Township resident Bob Damiano ( "Damiano "). At the time Respondent made this recommendation, Respondent knew that Jamie White would be using an excavator owned by Respondent or Respondent's company, Frost Valley Farms. Smith and Respondent agreed to have Jamie White complete the work on Jones Road and Marshall Squire Road utilizing the excavator owned by Damiano. There was no formal motion made at a public meeting approving Jamie White to complete the work. A third Supervisor, JoAnn Ritter ( "Ritter "), who had just been appointed at the July 11, 2007, Board meeting to fill the third, vacant Supervisor position, was unaware of Respondent's and Smith's agreement to utilize Jamie White to repair the Township roads. In or around July and August 2007, Jamie White d /b /a White's Trucking performed repairs on Jones Road. Jamie White used a 312 CAT excavator owned by Respondent for 28 hours of the work and a mini skid steer rented from Powell's Rental, Inc. for 11 hours of the work. Respondent /Frost Valley Farms charged Jamie White /White's Trucking a $90.00 per hour rental fee for use of the excavator. Smith and Ritter were unaware that the 312 CAT Excavator was owned by Respondent. Jamie White d /b /a White's Trucking submitted to the Township an invoice dated August 27, 2007, in the total amount of $3,935.00 for work performed on the Jones Road project. Of the total amount billed to the Township, $3,220.00 was for the 28 hours of work performed with Respondent's 312 CAT Excavator, and $715.00 was for the 11 hours of work performed with the mini skid steer. Respondent and Smith reviewed and approved the aforesaid White's Trucking invoice of August 27, 2007. Their initials appear on the invoice, indicating their approval. White, 08 -027 Page 17 The Township paid the invoice by check number 1308 dated September 5, 2007, in the amount of $3,935.00. The check was signed by all three Supervisors, including Respondent. At a Board meeting on September 5, 2007, Respondent seconded the motion and participated in the 3 -0 vote to approve payment of the bills that included the August 27, 2007, White's Trucking invoice for the work on the Jones Road project. In September 2007, Jamie White d /b /a White's Trucking began repairs for the Township on Marshall Squire Road. Jamie White used the 312 CAT excavator owned by Respondent for 34 hours of work. Respondent /Frost Valley Farms charged Jamie White /White's Trucking a $90.00 per hour rental fee for use of the excavator. A White's Trucking invoice dated September 25, 2007, in the total amount of $3,910.00 was submitted to the Township for work performed on Marshall Squire Road. Respondent seconded the motion and participated in the 3 -0 vote to approve payment of the bills that included the aforesaid White's Trucking invoice of September25, 2007. The Township paid the invoice by check number 1342 dated September 26, 2007, in the amount of $3,910.00. The check was signed by all three Supervisors, including Respondent. Jamie White issued payments to Respondent and /or Frost Valley Farms for rental of the 312 CAT Excavator used for the work on Jones Road and Marshall Squire Road. On or around March 9, 2008, flash floods in the Township caused damage to Spencer Hill Road. On March 9, 2008, Respondent and other Township road workers performed work on Spencer Hill Road as Township employees. On March 9, 2008, Ritter and Smith discussed using an excavator for the placement of drainage pipes relative to the repairs at Spencer Hill Road. The Township did not have equipment capable of making the necessary repairs. Ritter and Smith agreed to have Jamie White complete the work. Respondent was not present during the discussion. At the time Jamie White was approved to place the drainage pipes, Ritter and Smith were unaware that the excavator that would be used for the work was owned by Respondent. Ritter and Smith would not have given approval for Jamie White to complete the work on Spencer Hill Road if they had known that Respondent owned the excavator that would be used to complete the work. Jamie White d /b /a White's Trucking performed repairs to Spencer Hill Road as detailed at Fact Finding 43. The work commenced on March 10, 2008, and concluded on or about March 26, 2008. Jamie White used Respondent's 312 CAT excavator for the work on Spencer Hill Road. Jamie White had an unwritten agreement with Respondent to pay a rental fee of approximately $90.00 per hour for use of Respondent's excavator for the Spencer Hill Road project. Respondent was aware of the work performed by Jamie White and the equipment being utilized. White's Trucking submitted to the Township nine invoices totaling $7,930.00 for work performed on Spencer Hill Road. Two of the invoices were initialed by Respondent. The Township issued the following four checks totaling $7,930.00 to White's Trucking in payment of the invoices for work performed on Spencer Hill Road: (1) check number 253 dated March 21, 2008, in the amount of $915.00; (2) check number 254 dated March 21, 2008, in the amount of $3,220.00; (3) check number 279 dated March 27, 2008, in the amount of $2,415.00; and (4) check number 296 dated April 2, 2008, in the amount of $1,380.00. Respondent signed all four of these checks. White, 08 -027 Page 18 At the March 5, 2008, Board meeting, Respondent participated in the 3 -0 vote of the Board to approve payment of the bills that included eight of the aforesaid White's Trucking invoices for work on Spencer Hill Road. At the April 12, 2008, Board meeting, Respondent seconded the motion and participated in the 3 -0 vote of the Board to approve payment of the ninth invoice. From July /August 2007 through March 2008, the Township was charged a total of $14,835.00 for 129 hours of work performed by Jamie White with the excavator owned by Respondent. The rental fees paid to Respondent by Jamie White/White's Trucking for use of the excavator totaled in excess of $11,000.00, and as to each job were well in excess of $500.00. The parties have stipulated that Jamie White received a total financial gain of $3,225.00 for work performed for the Township using Respondent's excavator. Fact Findings 51 -51 a. The parties have further stipulated that Respondent's profit from rental of the excavator to White's Trucking for the aforesaid Township work totaled $1,193.00. Fact Findings 55 -55b. In late February 2008, the Township's cinder supplier indicated that because it was busy, cinders could not be delivered to the Township for approximately 1 -2 weeks. Jamie White informed Township officials that he could haul the cinders for the Township. Following discussion between Smith and Ritter, Jamie White was approved to haul the cinders for the Township. Respondent did not participate in the discussion. Jamie White delivered loads of cinders to the Township on February 25, 2008, February 27, 2008, and February 28, 2008. Jamie White d /b /a White's Trucking submitted to the Township an invoice dated February 29, 2008, in the total amount of $984.00 for the delivery of the cinders on February 25, 2008, February 27, 2008, and February 28, 2008. Respondent and Smith reviewed and initialed the invoice prior to payment being made. The Township paid the invoice with check number 237 dated March 5, 2008, in the amount of $984.00. At the Board's March 5, 2008, meeting, Respondent participated in the 3 -0 vote to approve payment of the bills that included the aforesaid White's Trucking invoice for hauling cinders. Check number 237 was signed by all three Supervisors, including Respondent. As a Township Supervisor, Respondent was required to file a Statement of Financial Interests ( "SFI ") with the Township each year by May 1. An SFI compliance review conducted by the Investigative Division of the State Ethics Commission confirmed that the Township has no record of Respondent filing SFIs for calendar years 2004, 2005, and 2007. The Township records include SFIs for Respondent for calendar years 2003 and 2006. Respondent's 2003 calendar year SFI disclosed the Township as a source of income. Respondent's 2006 calendar year SFI disclosed Frost Valley Farms as a source of income. Although Respondent did not disclose the Township as a source of income on his SFI for calendar year 2006, Respondent's income from the Township in 2006 was $50.00 and not reportable. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: White, 08 -027 Page 19 a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a) occurred in relation to White's participation in the hiring of his son by the Township to perform various services for the Township and the payments made by the Township for such services. b. That a violation of Section 1103(f) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(f) occurred when Nicholson Township entered into contracts with his son in excess of $500.00 without an open and public process. c. That a violation of Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(a) occurred regarding White's failure to file Statements of Financial Interests for calendar years 2004, 2005, and 2007. d. That no violation of Section 1105(b) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b) occurred as there is insufficient evidence to show that White failed to disclose all sources of income in excess of $1,300 on his Statements of Financial Interests filed for calendar years 2003 and 2006. 4. White agrees to make payment in the amount of $5,000.00 in settlement of this matter payable to Nicholson Township and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. White agrees to file Statements of Financial Interests for calendar years 2004, 2005, and 2007 with Nicholson Township. Copies of said forms shall be forwarded to the State Ethics Commission for compliance purposes. 6. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 1 -2. In considering the Consent Agreement, it is clear that a violation of Section 1103(a) of the Ethics Act occurred in relation to Respondent's participation in the hiring of his son, Jamie White, by the Township to perform various services for the Township and the approval /issuance of payments made by the Township for such services. We initially note that the violation of Section 1103(a) of the Ethics Act would not encompass the hiring of Jamie White as a Township employee, the hiring of Jamie White to perform repairs on Spencer Hill Road, or the hiring of Jamie White to haul cinders for White, 08 -027 Page 20 the Township because the Stipulated Findings do not establish any use of authority of office by Respondent as to those particular hirings. The violation of Section 1103(a) of the Ethics Act would encompass the hiring of Jamie White to perform repairs on Jones Road and Marshall Squire Road. Respondent used the authority of office as a Township Supervisor to recommend to Smith, and to subsequently agree with Smith, that Jamie White could do the work. The violation of Section 1103(a) of the Ethics Act would also encompass those instances when Respondent participated in the approval /issuance of payments made by the Township for work performed by Jamie White, either as a part -time Township employee or as a contractor. With respect to Jamie White's work as a part -time Township employee, Respondent initialed six of the eight time sheets submitted by Jamie White, signed eight of the ten checks issued to Jamie White, and voted to approve nine of the ten payments issued to Jamie White for work as a part -time Township employee. All such actions constituted uses of the authority of Respondent's office for the financial benefit of his son, Jamie White. With respect to the work performed by Jamie White /White's Trucking on the Jones Road project, in addition to recommending to Smith and agreeing with Smith that Jamie White could do the work, Respondent and Smith reviewed and approved the White's Trucking invoice of August 27, 2007, for work on the project. Respondent seconded the motion and participated in the 3 -0 vote of the Board to approve payment of the bills that included the August 27, 2007, White's Trucking invoice for the work. Respondent signed, as an authorized Township signatory, Township check number 1308 paying for the work. With respect to the work performed by Jamie White /White's Trucking on Marshall Squire Road, in addition to recommending to Smith and agreeing with Smith that Jamie White could do the work, Respondent seconded the motion and participated in the 3 -0 vote to approve payment of the bills that included the White's Trucking invoice dated September 25, 2007, for the work. Respondent signed, as an authorized Township signatory, Township check number 1342 paying for the work. With respect to the work performed by Jamie White /White's Trucking on Spencer Hill Road, Respondent initialed two of the nine invoices for the work, indicating his approval of the invoices as a Township Supervisor. Respondent participated in the 3 -0 votes of the Board to approve payment of the bills that included the aforesaid White's Trucking invoices for work on Spencer Hill Road. Additionally, as to one of the invoices, Respondent seconded the motion to approve payment of the bills. Respondent signed, as an authorized Township signatory, Township checks 253, 254, 279, and 296 paying for the work. With respect to the February 2008 hauling of cinders by Jamie White /White's Trucking, Respondent and Smith reviewed and initialed the White's Trucking invoice of February 29, 2008, for the work. Respondent participated in the 3 -0 vote to approve payment of the bills that included the White's Trucking invoice for the work. Respondent signed, as an authorized Township signatory, Township check number 237 paying for the work. The resulting financial benefits to Jamie White consisted of payments from the Township for work performed as a part -time Township employee and contractor. Respondent received a financial gain consisting of profit totaling $1,193.00 from rental of his excavator to White's Trucking for the work on Jones Road, Marshall Squire Road, and Spencer Hill Road. Fact Findings 55 -55b. White, 08 -027 Page 21 With each element of the recommended violation established, we hold that a violation of Section 1103(a) of the Ethics Act occurred in relation to Respondent's participation in the hiring of his son, Jamie White, by the Township to perform various services for the Township and the approval /issuance of payments made by the Township for such services. We agree with the parties that a violation of Section 1103(f) of the Ethics Act occurred in this case. As noted above, Section 1103(f) of the Ethics Act provides in part that no public official /public employee or his spouse or child or business with which the public official /public employee or his spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more, or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated, unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. The Consent Agreement specifically recommends a finding that a violation of Section 1103(f) of the Ethics Act occurred when the Township entered into contracts with Respondent's son that were in excess of $500.00, without an open and public process. Based upon the Stipulated Findings, it is clear that the Township entered into contracts with Jamie White /White's Trucking that were in excess of $500.00 without an open and public process. In Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Commw. Ct. 2004), the Commonwealth Court of Pennsylvania held that a township supervisor did not violate Section 1103(f) of the Ethics Act when a business that employed him entered into a contract in excess of $500.00 with his township without an open and public process, but the supervisor himself was neither a party to the contract nor a principal of the contracting business. Id. The Court determined that Section 1103(f) of the Ethics Act prohibited the conduct of entering into the contract under such circumstances. The Court concluded that although a violation of Section 1103(f) of the Ethics Act would be established under such circumstances, it would not be the public official who would be in violation of the law. Id. See also, Means, Opinion 04 -007. In the instant matter, Respondent was not a principal of White's Trucking, and Respondent did not enter into contract(s) with the Township. Based upon Bixler, supra, if Respondent and /or his business had not entered into subcontracts with Jamie White /White's Trucking as to the Township work, there would not have been a violation of Section 1103(f) by Respondent. However, Respondent and /or his business did enter into subcontracts with Jamie White /White's Trucking for the rental of an excavator to perform work on the Jones Road, Marshall Squire Road, and Spencer Hill Road repairs. The rental fees paid to Respondent by Jamie White /White's Trucking for use of the excavator totaled in excess of $11,000.00, and as to each job were well in excess of $500.00. Thus, we hold that a violation of Section 1103(f) of the Ethics Act occurred when the Township entered into contracts with Respondent's son that were in excess of $500.00 without an open and public process, and Respondent /Respondent's business entered into subcontracts with the son that were valued in excess of $500.00. It is clear, and therefore we hold, that a violation of Section 1104(a) of the Ethics Act occurred regarding Respondent's failure to file with the Township SFIs for calendar years 2004, 2005, and 2007. White, 08 -027 Page 22 We agree with the parties that there is insufficient evidence to establish that Respondent failed to disclose all sources of income in excess of $1,300 on his SFIs filed for calendar years 2003 and 2006. Respondent disclosed the Township as a source of income on his SFI for calendar year 2003. Respondent was not required to disclose the Township as a source of income on his SFI for calendar year 2006. There is insufficient evidence to establish that any other sources of income were required to be listed on these forms. We hold that no violation of Section 1105(b) of the Ethics Act occurred as there is insufficient evidence to establish that Respondent failed to disclose all sources of income in excess of $1,300 on his SFIs filed for calendar years 2003 and 2006. As part of the Consent Agreement, Respondent has agreed to make payment in the amount of $5,000.00 payable to Nicholson Township and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Respondent has further agreed to file SFIs for calendar years 2004, 2005, and 2007 with the Township and to forward copies of all such filings to this Commission for compliance verification purposes. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, per the Consent Agreement of the parties, Respondent is directed to make payment in the amount of $5,000.00 payable to Nicholson Township and forwarded to this Commission by no later than the thirtieth (30 day after the mailing date of this adjudication and Order. To the extent he has not already done so, Respondent is directed to file SFIs for calendar years 2004, 2005, and 2007 with the Township and to forward copies of all such filings to this Commission for compliance verification purposes by no later than the thirtieth (30 day after the mailing date of this adjudication and Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. As a Supervisor of Nicholson Township ( "Township ") located in Wyoming County, Pennsylvania, Respondent Duane White ( "White ") is a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. White violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his participation in the hiring of his son, Jamie White, by the Township to perform various services for the Township and the approval /issuance of payments made by the Township for such services. 3. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when the Township entered into contracts with White's son that were in excess of $500.00 without an open and public process, and White /White's business entered into subcontracts with the son that were valued in excess of $500.00. 4. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred regarding White's failure to file with the Township Statements of Financial Interests White, 08 -027 Page 23 for calendar years 2004, 2005, and 2007. 5. No violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred as there is insufficient evidence to establish that White failed to disclose all sources of income in excess of $1,300 on his Statements of Financial Interests filed for calendar years 2003 and 2006. In Re: Duane White, Respondent ORDER NO. 1526 File Docket: 08 -027 Date Decided: 7/22/09 Date Mailed: 8/4/09 1 As a Supervisor of Nicholson Township ( "Township ") located in Wyoming County, Pennsylvania, Respondent Duane White ( "White ") violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to his participation in the hiring of his son, Jamie White, by the Township to perform various services for the Township and the approval /issuance of payments made by the Township for such services. 2. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when the Township entered into contracts with White's son that were in excess of $500.00 without an open and public process, and White /White's business entered into subcontracts with the son that were valued in excess of $500.00. 3. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred regarding White's failure to file with the Township Statements of Financial Interests for calendar years 2004, 2005, and 2007. 4. No violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred as there is insufficient evidence to establish that White failed to disclose all sources of income in excess of $1,300 on his Statements of Financial Interests filed for calendar years 2003 and 2006. 5. Per the Consent Agreement of the parties, White is directed to make payment in the amount of $5,000.00 payable to Nicholson Township and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30 day after the mailing date of this Order. 6. To the extent he has not already done so, White is directed to file Statements of Financial Interests for calendar years 2004, 2005, and 2007 with the Township and to forward copies of all such filings to the Pennsylvania State Ethics Commission for compliance verification purposes by no later than the thirtieth (30 day after the mailing date of this Order. 7 Compliance with Paragraphs 5 and 6 of this Order will result in the closing of this case with no further action by this Commission. a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair